United Technologies (UTX -0.4%) is trading at a hefty discount and the company's businesses would thrive as three standalone companies, Bill Ackman says in arguments that back the case made last week by activist shareholder Third Point.
UTX is “one of the last remaining conglomerates,” Ackman says. “Other than Berkshire Hathaway, conglomerates have not had a great track record.”
UTX "has put together three outstanding businesses and built them to significant scale,” Ackman says, referring to the company's aerospace, elevators and climate-control businesses. “We think each business would trade at a very attractive valuation, and more importantly operate more effectively as independent companies.”
Ackman does not reveal the size of Pershing Square's stake in UTX.
Now read: Emerson Electric: An Autonomous Future »